Pages

Wednesday, November 29, 2017

On a roll: NBCC Q2 profit increases by 31.33%

NBCC CMD Dr AK Mittal

NBCC, the state-owned Navratna PSU under the Ministry of Housing and Urban Affairs, has posted a 31.33-percent increase in PAT (Profit after Tax) at Rs. 81.24 crore for the Second Quarter ended September 2017, compared to Rs. 61.84 crore in the same quarter last year. The real estate PSU of the Ministry said in a statement.
The PSU has registered a positive... EBITDA of Rs 85.93 Crore in Q2FY17-18 as against an EBITDA of Rs 57.12 Crore in Q2FY16-17.
The total income from the operations of the PSU is Rs.1328.02 crore.
Elaborating upon the business outlook, Dr. Anoop Kumar Mittal, CMD, NBCC, said, “NBCC had established its stronghold in the areas of PMC and redevelopment works, and continued to garner huge work orders.”
Some of the notable works, he mentioned included, redevelopment of Nauroji Nagar into a World Trade Centre (WTC), State-of-The-Art Exhibition-Cum-Convention Centre (IECC) in Pragati Maidan, 2,500-flat housing complex for AIIMS staff, Development of commercial and residential space at Wadala, Mumbai, among others.
While expressing confidence of achieving 30 percent revenue growth in the current fiscal, Mittal added that NBCC was looking at capturing the global market in a big way and had entered into a number of agreements with foreign companies, besides incorporating a subsidiary, NBCC International Limited and offices in international regions to boost the company’s business expansion overseas.
Recently, Simplex Infrastructures bagged a Rs 524-crore order from state-owned NBCC for construction of institutional buildings in Odisha.
"We have received an order from NBCC (India) Ltd for Rs 524 crore for construction of institutional buildings in Bhubaneswar, Odisha," Simplex Infrastructures said in a BSE filing.
Earlier, NBCC bagged Rs 400 crore contract to reconstruct Manora Aamdar Niwas building at Nariman Point in Mumbai.
NBCC said that the Empowered Committee for reconstruction work of Manora Aamdar Niwas in its meeting dated September 12 decided that reconstruction work in the Nariman Point area be given to NBCC Ltd amounting to Rs 400 crore.
NBCC would get project management consultancy (PMC) fee of Rs 6.5 percent, it added.
Last month, NBCC announced that the Tourism Ministry has accepted its proposal for upgrading and maintenance of Purana Qila in the national capital.
NBCC, a Navratna PSU under the Ministry of Urban Affairs, has been executing many landmark projects as a PMC which contributes to about 85 percent of its annual revenue. The segment being the PSU’s core strength, the areas covered under its umbrella include roads, hospitals and medical colleges, institutions, offices, airports, bridges, industrial and environmental structures among others.
The real estate segment of the PSU which came into being in 1988, mainly executing commercial real estate projects, has recently undergone a sea change operation wise. Keeping pace with the changing business scenario, NBCC, in order to enhance its margin viz-a-viz its faster growth, has restrategized its operation by putting added thrust in real estate and giving it a whole new dimension.
Recently, NBCC has taken over many redevelopment projects. The present realty business of the PSU could be viewed falling in two categories based on source of origin of the projects wherein NBCC buys land from private and government agencies alike, develops the land and sells it off; while others are sourced from government wherein, NBCC carries out re-development of such properties on a model. The New Motibagh Green Complex (Delhi) under General Pool Residential Accommodation (GPRA) Scheme is one of the finest examples of such a re-development work in recent times. The success of New Moti Bagh has earned it a huge dividend in the form of Govt awarding huge number of redevelopment projects to the PSU. Apart from redevelopment, the other category of the real estate also holds a great promise for the future of the PSU as it has about 30 residential and commercial real estate projects presently going on at various locations of the country and more are coming up with huge investments.